Hi Guys,
Any idea how I should process the changes to my “LEP.ASX Ale Property Group” shares given the buyout by CLW?
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Hi, I am also interested in a response to this. Thanks
@Johnsy @Panos I’ve added instructions on how to handle this below:
Mixed consideration (default option)
Under the Transaction terms, LEP Security holders will receive $5.683 per LEP security (Consideration) comprising:
$3.673 cash per LEP security (of which CLW will fund $0.833 per LEP security)
0.408 CLW securities per LEP security.
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Enter the total cash amount received by adding a ‘Return of Capital’ trade.
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Use the merge function to convert LEP to CLW based on the above ratio.
Mix & Match options
All stocks
1.1546 CLW securities for 100% of their securities
If you select this option, use the merge function to convert LEP to CLW based on the above ratio.
All cash
$5.681 cash per ALE security for 100% of their securities.
If you select this option, add a sell trade with a selling price of $5.681 to close off your position.
Hi Jack,
From what I can ascertain from the ALE scheme booklet, the take over by Charter Hall will trigger a CGT event, including the scrip for scrip. The ATO has provided no roll-over relief for scrip for scrip because it doesn’t satisfy certain conditions.
I think how this needs to be entered is by selling the entire holdings of ALE for the cash component PLUS CLW shares X $5.1754 ($5.1754 being the market value on the implementation date being 17 December as advised by Charter Hall). This will then allow you to calculate the CGT implication whether that be a loss or a gain.
The 2nd part would be to then buy the CLW shares that were issued at $5.1754 which will be the base cost of these shares.
Regards,
Justine.
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Did we get an official share sight response to Justine’s alternative. I remember reading that the merger specifically did not have rollover relief - so using a function that applies rollover relief seems incorrect. So I agree with Justine. Can Share Sight please respond on this asap.
I believe the Share Sight service has a weakness in just not putting an instruction out for each corporate action in simple to follow terms, and instead making people waste time on discussions and incorrect responses. An accounting firm could be engaged to provide the instructions ON SS behalf very quickly. This would significantly add to ShareSights value proposition
That is a great idea Rob. I really hope Sharesight take this on board for serious consideration. It would definitely be a value add for Sharesight!
I don’t think this is the correct way to record this event as it does not reflect the capital gains on the shares. Please clarify. Thanks.
Agreed +1
Hmmm - well I can understand that Sharesight can’t/shouldn’t give Accounting advice, but the advice requested was how to process the transaction in Sharesight!! It seems like the “how to process” info might be based upon some information (not quoted nor sourced) which gives rollover relief in this transaction.
What WOULD be helpful is if those at Sharesight were able to clarify whether they mis-spoke, or, conversely, have information that is not presently to hand for a number of Sharesight members (as evidenced by responses).
If SS is aware of rollover relief in this transaction (as stated uncategorically in your response above), please reference a source. If SS is aware that there is NO rollover relief, please amend this thread. Otherwise this thread continues to promulgate an ongoing credibility hit on Sharesight the company!
Currently diving into the scheme booklet and reviewing the mentioned instructions. I’ll get back here shortly with a definitive answer for how to enter this in Sharesight 
Hmmm - shortly??
Hi All,
Apologies for the delay, these mergers can get quite complex to dive into, particularly with these dense merger booklets 
It seems our initial instruction was incorrect in terms of the script-for-script rollover as pointed out by @Jusco, thanks for pointing that out! 
The instructions by @Jusco look to be the best way to track this in your portfolios:
- Manually enter a Return Of Capital trade on your ALE holding
- Sell ALE for$5.1754 (marked value on implementation date)
- Buy CLW at the above market value
The gain or loss for ALE is based on the advice in the merger booklet below on page 107, which compromises of the cash received and the value of the CLW securities.
The market value of CLW is determined through the below announcement:
https://newswire.iguana2.com/af5f4d73c1a54a33/clw.asx/2A1347072/CLW_LEP:_Implementation_of_Scheme
As always, for any tax-specific questions or queries, please consult a tax specialist/accountant.
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Just confirming the approach suggested.
Do we combine the cash received with the shares received into one line as a sell transaction? I need to reduce my shares from 2280 to 0.
Currently my sharesight says, for share LEP (Ale Property group), that I have 2280 shares. It was taken over on 17 Dec 21. I received $3.673 cash and 0.4080 CLW securities per LEP security.
@aushark So your cash received will be manually entered as a return of capital trade, then you close off and add CLW via the steps in my most recent comment above
Thanks, can you give me the exact transactions I need to enter into Sharesight, given my situation:
Currently my sharesight says, for share LEP (Ale Property group), that I have 2280 shares. It was taken over on 17 Dec 21. I received $3.673 cash and 0.4080 CLW securities per LEP security.
I’m wanting to know how to record these transactions in Sharesight and how they may be treated accounting wise and capital gains tax wise.
I received $8374.90 cash on 17 Dec and 930 CLW shares.
The market value of CLW securities received by LEP scheme securityholders is $5.1754 per CLW
security, based on the 1-day volume weighted average price of CLW securities on 17 December 2021 (according to a notice on ALE’s website).
Manually enter a return of capital for the cash received
Sell all units of ALE for $5.1754, enter a buy trade for your new CLW units for the same price on the implementation date
When I added 2 transactions like you suggested (a capital return and then a sell transaction), I got a capital gain of $10,642. I have now entered one ‘sell’ transaction with a blended rate of 5.78422 (taking into account the capital return and the shares received) to give me a gain of about $3554 on a ~ $10,000 investment, which I believe is fairly accurate, given what I received as consideration.